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RavnAir warns it will collapse without more federal coronavirus loans

(KTUU)
Published: Apr. 24, 2020 at 11:26 AM AKDT
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Alaska’s largest regional air carrier will be liquidated unless it can receive more federal coronavirus loans.

RavnAir

that it was laying off all staff, ceasing all operations and filing for Chapter 11 bankruptcy protections due to coronavirus-related losses.

Dave Pflieger, the CEO of RavnAir, sent an email Friday morning, explaining that the air carrier needed to secure loans from a

to survive a 90% drop in passenger bookings.

“Unfortunately, we received news this week that while eligible for payroll grant assistance, we will not be eligible for loans because the Treasury is using an Available Seat Mile (ASM) formula for loan allocations that does not enable smaller airlines to get material CARES Act assistance,” Pflieger wrote by email.

The regional air carrier requested $75 million but was only able to secure $5.2 million in federal loans, according to RavnAir.

“This flawed formula massively favors large well-capitalized airlines and leaves very little for small regional carriers like Ravn,” Pflieger said. “It is not representative of the criticality of an airline to its state, its communities, and its citizens.”

The U.S. Treasury Department would need to change the ASM allocation method for RavnAir to receive more funding.

Pflieger asked Alaskans to get on social media to ask the president to step in:

As a result, I would ask that you use your social media accounts, especially Twitter, or take to your phones, and send the following messages to President Trump [@realDonaldTrump]:
  • #SaveRavnAirAlaska Alaska's largest regional airline @realDonaldTrump
  • Drop the Available Seat Mile (ASM) formula for #CARESAct loans to airlines @USTreasury @StevenMnuchin1
  • Ensure small airlines get critical federal aid. #COVID19 #Coronavirus #Bailout #SaveRavnAirAlaska
  • Ensure small airlines get critical federal aid. #COVID19 #Coronavirus #Bailout Without federal assistance, rural Alaskans will go without vital food, medicine, and air service @realDonaldTrump @USTreasury @StevenMnuchin1 #SaveRavnAirAlaska
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